I have a history of using iPod touches as a entertainment device, starting from the 1st, 4th and finally 5th generation.
I really like the upgrades to the new iPod touch, with a taller display identical to the iPhone 5, 5C and 5S, and faster graphics with the outdated A5 chip(wished there was a more powerful SoC) and a slim design. Basically an iPhone 5C without cellular data and phone and SMS functionality. But be careful, this device, with the laggy A5 chip, will start to lag after a few months of usage, and it did so on mine.
